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The FCA-regulated investment platform Shojin has just released a survey among 2,000 UK adults, assessing investors” attitudes to the new investment landscape.
In the next 12 months, UK investors will
seek diversification, ISAs and investments offering fixed
returns in response to their concerns about the health of
the UK economy, new research released by Shojin reveals.
The research was carried out in September among 2,000 UK
adults via an online survey by research agency Opinium, of which
964 have investment portfolios worth in excess of £10,000
($12,400) – this includes all forms of investments but discounts
their savings and property used as a primary residency.
The research found that two thirds (65 per cent) of UK retail
investors have adapted their investment strategies in response to
rising interest rates and high inflation over the past 12 months.
But economic fears remain, with 55 per cent worrying that the UK
economy entering a recession would negatively impact their
investments.
When looking forward to the next 12 months, 38 per cent of retail
investors said they would diversify their investment strategy,
while 53 per cent plan to keep their investment strategy largely
the same as it has been throughout 2023.
Elsewhere, the research shows that 57 per cent of UK retail
investors will prioritise investments that offer set returns
within an agreed time period. Two thirds plan to increase the
amount of money they have saved in ISAs.
The research also highlighted the prominent role technology will
play in retail investors’ strategies, with 40 per cent planning
to increase their use of apps and online platforms to manage
investments directly.
“Our research shows that while UK investors are navigating the
complex financial landscape with adaptability and resilience,
concerns still linger about the state of the national economy.
Understandably, many are likely to take a low-risk approach over
the next 12 months. Meanwhile, it’s positive to see a growing
number of investors taking proactive steps and beginning to
diversify their portfolios,” Jatin Ondhia, CEO
of Shojin said.
“Each investor must assess their appetite and ability to manage
risk. As part of this calculation, they ought to consider
diversification, which can act as a shield against market
volatility and offer a hedge against uncertainties,” Ondhia
added.
“As we move forward, there is a sense of cautious optimism – most
(57 per cent) [of] UK investors think the worst of the economic
turbulence from the past 18 months has now passed. Clearly, the
government needs to rebuild trust in the state of the economy.
But investors must remain in control of their decisions; they
have to ensure they’re making choices that align with their risk
tolerance and long-term goals. It will be fascinating to see how
the investment landscape continues to evolve in the months to
come,” Ondhia said.
Shojin is an FCA-regulated online real estate investment
platform. Its Innovative Finance ISA enables investors to
diversify their investment strategy and take advantage of tax
incentives to grow capital.
